UK house prices rose at their slowest annual rate in five years this month and look set to remain subdued due to modest economic growth and squeezed household budgets, mortgage lender Nationwide said today. 

House prices across the UK were on average 2% higher this month than a year ago, slowing from a growth rate of 2.4% in May. 

This was the weakest in five years though a smaller slowdown than the drop to 1.7% forecast in a Reuters poll. 

In June alone, prices rose 0.5% compared to a forecast rise of 0.3%, but Nationwide said there was only a trickle of new properties coming on to the market and inquiries by potential new buyers were subdued.